In my previous life, we always verified Good Standing with the Secretary of State on entities for business loans. In my current life, we don't anymore and management is wanting validation of why we would do this if "we know our customers and we have never needed to before." Besides the obvious BSA due diligence issues, my understanding is that if we have a commercial loan customer who has allowed their good standing with the SOS to lapse by not paying their franchise taxes annually, this could jeopardize our lien position on collateral. I am searching our state's SOS data and state statues to find a reference that this is truly the case and that we may be in a vulnerable position if we continue to not verify. Even if we know our customers, how do we know if they are paying all their business related taxes? Thanks.